OFCCP Issues Religious Exemption Final Rule

This rule provides clarity on the religious exemption in E.O. 11246

OFCCP has published the Implementing Legal Requirements Regarding the Equal Opportunity Clause’s Religious Exemption final rule in the Federal Register effective January 8, 2021. The rule clarifies religious exemption in Executive Order 11246, confirms that religious organizations can participate in federal procurement, and serves as a deregulatory action under Executive Order 13771.

Some key points of the rule:

• Amends 41 CFR 60-1.3 and clarifies the E.O. 11246 religious exemption parameters by adding key terms and their definitions
• Adds a construction rule in 41 CFR 60-1.5 to provide the maximum legal protection of religious exercise allowed by the Constitution and laws like the Religious Freedom Restoration Act
• Adds illustrative examples of Religious Corporation, association, educational institution, or society to better illustrate which organizations may qualify for the religious exemption
• Does not change the equal employment opportunity obligations under E.O. 11246 for most federal contractors

For more information, refer to the OFCCP’s FAQ page.